CHAPTER 1. STATE BOARD OF ACCOUNTS CREATED
IC 5-11
ARTICLE 11. ACCOUNTING FOR PUBLIC FUNDS
IC 5-11-1
Chapter 1. State Board of Accounts Created
IC 5-11-1-1
Establishment; members; appointment; qualifications; terms;
tenure
Sec. 1. There is established a state board of accounts. The board
consists of the state examiner and two (2) deputy examiners as
provided in this section. The principal officer of the board is the state
examiner, who shall be appointed by the governor and who shall hold
office for a term of four (4) years from the date of appointment. The
state examiner must be a certified public accountant with at least
three (3) consecutive years of active experience as a field examiner
with the state board of accounts that immediately precedes the
appointment as state examiner. The governor shall also appoint two
(2) deputy examiners, who must have the same qualifications as the
state examiner, be of different political parties, and be subordinate
to the state examiner. The deputy examiners shall be appointed for
terms of four (4) years. The state examiner and the deputy examiners
are subject to removal by the governor for incompetency or for
misconduct of the office, after a hearing upon due notice and upon
stated charges in writing. An appeal may be taken by the officer
removed to the circuit or a superior court of Marion County.
(Formerly: Acts 1909, c.55, s.1; Acts 1915, c.72, s.1; Acts 1941,
c.110, s.1; Acts 1943, c.236, s.1; Acts 1945, c.176, s.1.) As amended
by Acts 1980, P.L.30, SEC.1; P.L.3-1986, SEC.7; P.L.39-1996,
SEC.1; P.L.246-2005, SEC.53.
IC 5-11-1-2
System of accounting and reporting
Sec. 2. The state board of accounts shall formulate, prescribe, and
install a system of accounting and reporting in conformity with this
chapter, which must comply with the following:
(1) Be uniform for every public office and every public account
of the same class and contain written standards that an entity
that is subject to audit must observe.
(2) Exhibit true accounts and detailed statements of funds
collected, received, obligated, and expended for or on account
of the public for any and every purpose whatever, and by all
public officers, employees, or other individuals.
(3) Show the receipt, use, and disposition of all public property
and the income, if any, derived from the property.
(4) Show all sources of public income and the amounts due and
received from each source.
(5) Show all receipts, vouchers, contracts, obligations, and other
documents kept, or that may be required to be kept, to prove the
validity of every transaction.
The state board of accounts shall formulate or approve all statements
and reports necessary for the internal administration of the office to
which the statements and reports pertain. The state board of accounts
shall approve all reports that are published or that are required to be
filed in the office of state examiner. The state board of accounts shall
from time to time make and enforce changes in the system and forms
of accounting and reporting as necessary to conform to law.
(Formerly: Acts 1909, c.55, s.2; Acts 1945, c.176, s.2.) As amended
by Acts 1980, P.L.30, SEC.2; P.L.3-1986, SEC.8; P.L.39-1996,
SEC.2; P.L.176-2009, SEC.2.
IC 5-11-1-3
Separate accounts
Sec. 3. Separate accounts shall be kept for every appropriation or
fund of the state or any municipality. Separate accounts shall also be
kept for each department, undertaking, enterprise, institution, and
public service industry.
(Formerly: Acts 1909, c.55, s.3.) As amended by Acts 1980, P.L.30,
SEC.3.
IC 5-11-1-4
Financial reports
Sec. 4. The state examiner shall require from every municipality
and every state or local governmental unit, entity, or instrumentality
financial reports covering the full period of each fiscal year. These
reports shall be prepared, verified, and filed with the state examiner
not later than sixty (60) days after the close of each fiscal year. The
reports must be filed electronically, in a manner prescribed by the
state examiner that is compatible with the technology employed by
the political subdivision.
(Formerly: Acts 1909, c.55, s.4.) As amended by Acts 1980, P.L.30,
SEC.4; P.L.3-1986, SEC.9; P.L.44-1991, SEC.1; P.L.50-2000,
SEC.2; P.L.189-2005, SEC.1; P.L.176-2009, SEC.3.
IC 5-11-1-5
Repealed
(Repealed by Acts 1980, P.L.30, SEC.19.)
IC 5-11-1-6
Forms of reports
Sec. 6. The state board of accounts shall formulate, prescribe, and
approve the forms for reports required to be made by this chapter.
The state examiner shall annually furnish to the officers required to
make reports by this chapter such printed blanks and forms, on which
shall be indicated the information required, together with suitable
printed instructions for filling out the same.
(Formerly: Acts 1909, c.55, s.6.) As amended by Acts 1980, P.L.30,
SEC.5.
IC 5-11-1-7
Field examiners; private examiners
Sec. 7. (a) The state examiner shall appoint assistants not
exceeding the number required to administer this article. The
assistants are to be known as "field examiners" and are at all times
subject to the order and direction of the state examiner. Field
examiners shall inspect and examine accounts of all state agencies,
municipalities, and other governmental units, entities, or
instrumentalities.
(b) The state examiner may engage or allow the engagement of
private examiners to the extent the state examiner determines
necessary to satisfy the requirements of this article. These examiners
are subject to the direction of the state examiner while performing
examinations under this article.
(c) The state examiner may engage experts to assist the state
board of accounts in carrying out its responsibilities under this
article.
(Formerly: Acts 1909, c.55, s.7.) As amended by Acts 1980, P.L.30,
SEC.6; P.L.3-1986, SEC.10.
IC 5-11-1-8
Field examiners; examinations
Sec. 8. Such field examiners shall be appointed from applicants
who shall have successfully passed an open, competitive examination
for testing their fitness for appointment. Such examinations shall be
given under the direction of the board after due announcement in the
public press, and shall be practical in their character, and, as far as
may be, shall relate to those matters which will fairly test the relative
capacity and fitness of the persons examined to discharge the duties
of the office. All appointments of field examiners shall be made
solely upon the ground of fitness and without regard to the political
affiliation of the appointee, excepting that no more than one-half
(1/2) of the number of field examiners employed at any one (1) time
shall belong to any one (1) political party. The state board of
accounts is empowered to make and establish, and from time to time
alter and amend, by-laws, rules and regulations for the proper
enforcement of the provisions of this article and other laws placing
duties and responsibilities on the state board of accounts.
(Formerly: Acts 1909, c.55, s.8.) As amended by Acts 1980, P.L.30,
SEC.7.
IC 5-11-1-9
Financial examinations; required inquiries; inefficiencies
encountered; witnesses; records; process
Sec. 9. (a) The state examiner, personally or through the deputy
examiners, field examiners, or private examiners, shall examine all
accounts and all financial affairs of every public office and officer,
state office, state institution, and entity.
(b) An examination of an entity deriving:
(1) less than fifty percent (50%); or
(2) at least fifty percent (50%) but less than one hundred
thousand dollars ($100,000) if the entity is organized as a
not-for-profit corporation;
of its disbursements during the period of time subject to an
examination from appropriations, public funds, taxes, and other
sources of public expense shall be limited to matters relevant to the
use of the public money received by the entity.
(c) The examination of an entity described in subsection (b) may
be waived or deferred by the state examiner if the state examiner
determines in writing that all disbursements of public money during
the period subject to examination were made for the purposes for
which the money was received. However, the:
(1) Indiana economic development corporation created by
IC 5-28-3 and the corporation's funds, accounts, and financial
affairs; and
(2) department of financial institutions established by
IC 28-11-1-1 and the department's funds, accounts, and
financial affairs;
shall be examined biennially by the state board of accounts.
(d) On every examination under this section, inquiry shall be
made as to the following:
(1) The financial condition and resources of each municipality,
office, institution, or entity.
(2) Whether the laws of the state and the uniform compliance
guidelines of the state board of accounts established under
section 24 of this chapter have been complied with.
(3) The methods and accuracy of the accounts and reports of the
person examined.
The examinations shall be made without notice.
(e) If during an examination of a state office under this chapter the
examiner encounters an inefficiency in the operation of the state
office, the examiner may comment on the inefficiency in the
examiner's report.
(f) The state examiner, deputy examiners, any field examiner, or
any private examiner, when engaged in making any examination or
when engaged in any official duty devolved upon them by the state
examiner, is entitled to do the following:
(1) Enter into any state, county, city, township, or other public
office in this state, or any entity, agency, or instrumentality, and
examine any books, papers, documents, or electronically stored
information for the purpose of making an examination.
(2) Have access, in the presence of the custodian or the
custodian's deputy, to the cash drawers and cash in the custody
of the officer.
(3) During business hours, examine the public accounts in any
depository that has public funds in its custody pursuant to the
laws of this state.
(g) The state examiner, deputy examiner, or any field examiner,
when engaged in making any examination authorized by law, may
issue subpoenas for witnesses to appear before the examiner in
person or to produce books, papers, or other records (including
records stored in electronic data processing systems) for inspection
and examination. The state examiner, deputy examiner, and any field
examiner may administer oaths and examine witnesses under oath
orally or by interrogatories concerning the matters under
investigation and examination. Under the authority of the state
examiner, the oral examinations may be transcribed with the
reasonable expense paid by the examined person in the same manner
as the compensation of the field examiner is paid. The subpoenas
shall be served by any person authorized to serve civil process from
any court in this state. If a witness duly subpoenaed refuses to attend,
refuses to produce information required in the subpoena, or attends
and refuses to be sworn or affirmed, or to testify when called upon
to do so, the examiner may apply to the circuit court having
jurisdiction of the witness for the enforcement of attendance and
answers to questions as provided by the law governing the taking of
depositions.
(Formerly: Acts 1909, c.55, s.9; Acts 1945, c.176, s.3.) As amended
by Acts 1978, P.L.2, SEC.506; Acts 1980, P.L.30, SEC.8;
P.L.3-1986, SEC.11; P.L.63-1989, SEC.1; P.L.70-1995, SEC.1;
P.L.39-1996, SEC.3; P.L.50-1999, SEC.1; P.L.4-2005, SEC.25;
P.L.213-2007, SEC.2; P.L.217-2007, SEC.2.
IC 5-11-1-9.5
Grounds for examination; retaliation for making sworn statement
prohibited
Sec. 9.5. (a) The state examiner may not undertake an
examination of a public office, officer, or institution based on the
allegation of an individual, organization, or institution that a
violation of the law has occurred unless:
(1) the individual or representative of the organization or
institution makes the allegation in the form of a sworn statement
that the individual or representative believes the allegation to be
true; or
(2) the state examiner has probable cause to believe that a
violation of the law has occurred.
(b) A public office, officer, or institution may not retaliate against
an employee of the state or a political subdivision for making the
sworn statement described in subsection (a).
As added by P.L.51-1985, SEC.1.
IC 5-11-1-9.7
Withdrawal or removal of counties from solid waste management
districts
Sec. 9.7. (a) The state examiner, personally or through the deputy
examiners, field examiners, or private examiners, shall examine the
division under IC 13-21-4-4 of the responsibility for legal obligations
entered into by a joint solid waste management district upon the
withdrawal or removal of a county from the district.
(b) Not later than one hundred twenty (120) days after the
effective date of the withdrawal or removal, the state examiner shall
issue a report of the examination under subsection (a) to:
(1) the board of directors of the joint solid waste management
district; and
(2) the executive of the county that withdrew or was removed
from the joint solid waste management district.
(c) A report under this section may be used as evidence in an
action seeking to enforce the payment of legal obligations entered
into by a joint solid waste management district.
As added by P.L.74-2002, SEC.1.
IC 5-11-1-10
Failure to file report; interference with examiners; offense
Sec. 10. A public officer who:
(1) fails to make, verify, and file with the state examiner any
report required by this chapter;
(2) fails to follow the directions of the state examiner in
keeping the accounts of the officer's office;
(3) refuses the state examiner, deputy examiner, field examiner,
or private examiner access to the books, accounts, papers,
documents, cash drawer, or cash of the officer's office; or
(4) interferes with an examiner in the discharge of the
examiner's official duties;
commits a Class B infraction and forfeits office.
(Formerly: Acts 1909, c.55, s.10.) As amended by Acts 1978, P.L.2,
SEC.507; P.L.3-1986, SEC.12.
IC 5-11-1-11
Records of money collected; public inspection
Sec. 11. There shall be kept in the office of each public officer,
board, commission, agency, instrumentality, and institution in this
state, a record of money collected for the public treasury, the forms
and records for which, for each class of offices, shall be devised and
formulated by the state board of accounts. Such records as are
provided for in this section shall be public records and must be
accessible to the public during regular office hours.
(Formerly: Acts 1909, c.55, s.11.) As amended by Acts 1980, P.L.30,
SEC.9.
IC 5-11-1-12
Repealed
(Repealed by Acts 1980, P.L.30, SEC.19.)
IC 5-11-1-13
Warrants or checks of state or municipality; receipts or quietus;
correctness of claims
Sec. 13. Each officer having authority to draw the warrant or
check of the state or of any municipality referred to in this chapter in
disbursing its funds, or who has authority to execute the receipt or
quietus of the state or of such municipality in settlement with public
officers or with debtors, before presenting the same for allowance to
the board or other authority required to pass upon the same, shall
make an examination of all claims as to their form, the authentication
thereof as required by law, whether they are based upon contract or
statutory authority, and as to their apparent correctness, and upon
presenting the same to file therewith his certificate in writing as to
such matters in respect to each and all of such claims. Where the
authority to pass upon and allow such claim is lodged in such officer,
he shall, before drawing a warrant or check therefor, certify to the
correctness thereof over his official signature. Before issuing the
receipt or quietus of the state or municipality to any debtor or any
officer making settlement, he shall examine the report, account or
settlement sheet upon which settlement is made, and require of such
debtor or officer, or to otherwise secure, all such information,
accounts, vouchers or exhibits as shall be necessary to satisfy such
officer issuing such receipt or quietus of the correctness of such
report, account or settlement sheet, and to certify thereon that he has
made such examination and is satisfied as to its correctness, and no
such warrant, check, receipt, or quietus shall be issued by any such
officer until such certificate shall have been executed and filed with
such claim, report, account or settlement sheet. Where it is not
practical for the officer to certify to the correctness of each revenue
or claim document, the state board of accounts may prescribe other
methods of preaudit to be performed before approval by the officer
or his employees.
(Formerly: Acts 1909, c.55, s.13.) As amended by Acts 1980, P.L.30,
SEC.10.
IC 5-11-1-14
Salaries and traveling expenses of state examiner, deputies, and
assistants
Sec. 14. The salaries and necessary traveling expenses of the state
examiner, his deputies, and assistants when engaged in the business
of the state shall be paid as otherwise provided by law.
(Formerly: Acts 1909, c.55, s.15.) As amended by Acts 1980, P.L.30,
SEC.11.
IC 5-11-1-15
Bonds and crime policies for faithful performance
Sec. 15. (a) The state examiner, deputy examiners, and field
examiners shall each give bond for the faithful performance of the
examiner's duties, as follows:
(1) The state examiner in the sum of five thousand dollars
($5,000), to be approved by the governor.
(2) Each deputy examiner in the sum of three thousand dollars
($3,000), to be approved by the governor.
(3) Each field examiner in the sum of one thousand dollars
($1,000), to be approved by the state examiner. However, field
examiners may be covered by a blanket bond or crime insurance
policy endorsed to include faithful performance under
IC 5-4-1-15.1 subject to approval of the state examiner.
(b) The commissioner of insurance shall prescribe the form of the
bonds or crime policies required by this section.
(Formerly: Acts 1909, c.55, s.16; Acts 1967, c.268, s.1.) As amended
by P.L.3-1986, SEC.13; P.L.49-1995, SEC.6.
IC 5-11-1-16
Definitions
Sec. 16. (a) As used in this article, "municipality" means any
county, township, city, town, school corporation, special taxing
district, or other political subdivision of Indiana.
(b) As used in this article, "state" means any board, commission,
department, division, bureau, committee, agency, governmental
subdivision, military body, authority, or other instrumentality of the
state, but does not include a municipality.
(c) As used in this article, "public office" means the office of any
and every individual who for or on behalf of the state or any
municipality or any public hospital holds, receives, disburses, or
keeps the accounts of the receipts and disbursements of any public
funds.
(d) As used in this article, "public officer" means any individual
who holds, receives, disburses, or is required by law to keep any
account of public funds or other funds for which the individual is
accountable by virtue of the individual's public office.
(e) As used in this article, "entity" means any provider of goods,
services, or other benefits that is:
(1) maintained in whole or in part at public expense; or
(2) supported in whole or in part by appropriations or public
funds or by taxation.
The term does not include the state or a municipality (as defined in
this section).
(f) As used in this article, a "public hospital" means either of the
following:
(1) An institution licensed under IC 16-21 and which is owned
by the state or an agency of the state or one which is a
municipal corporation. A hospital is a municipal corporation if
its governing board members are appointed by elected officials
of a municipality.
(2) A state institution (as defined in IC 12-7-2-184).
(Formerly: Acts 1909, c.55, s.17.) As amended by Acts 1980, P.L.30,
SEC.12; P.L.3-1986, SEC.14; P.L.2-1992, SEC.52; P.L.2-1993,
SEC.44.
IC 5-11-1-17
Repealed
(Repealed by Acts 1978, P.L.2, SEC.521.)
IC 5-11-1-18
Examinations without notice; disclosure; offense
Sec. 18. All examinations under this chapter shall be made
without notice to the officers whose accounts are to be examined,
and without notice to any clerk, deputy, employee, or other person
employed in or connected with the office or the business of such an
officer. A person who recklessly communicates knowledge of any
proposed examination of any public account to the officer in charge
of the account or to any other unauthorized person commits a Class
B misdemeanor.
(Formerly: Acts 1909, c.55, s.19.) As amended by Acts 1978, P.L.2,
SEC.509.
IC 5-11-1-19
Copyrighting uniform bookkeeping system; purchase of public
office supplies
Sec. 19. No system for uniform bookkeeping or any book, record,
or form which may be adopted after April 5, 1909, shall be
copyrighted unless it shall be deemed expedient by the governor that
a copyright be procured in the name of the state, and if any such
copyright be procured, the acceptance by the state or by any
municipality of any bid for printed supplies of any sort shall operate
as a license from the state to the successful bidder to manufacture
any such copyrighted books, records, or forms included in such bid
for public use without payment of royalty. All public books, records,
and stationery used in the offices for which examination is provided
in this chapter shall be purchased by the state, municipality, or
institution after the manner provided by law.
(Formerly: Acts 1909, c.55, s.20.) As amended by P.L.25-1986,
SEC.36.
IC 5-11-1-20
Repealed
(Repealed by Acts 1980, P.L.30, SEC.19.)
IC 5-11-1-21
Mandatory adoption of uniform system; refusal to adopt or failure
to use; offense; penalty
Sec. 21. All public officers shall adopt and use the books, forms,
records, and systems of accounting and reporting adopted by the state
board of accounts, when directed so to do by the board, and all
forms, books, and records shall be purchased by those officers in the
manner provided by law. An officer who refuses to provide such
books, forms, or records, fails to use them, or fails to keep the
accounts of his office as directed by the board commits a Class C
infraction and forfeits his office.
(Formerly: Acts 1909, c.55, s.22.) As amended by Acts 1978, P.L.2,
SEC.510.
IC 5-11-1-22
Existing duties; effect of chapter
Sec. 22. The provisions of this chapter shall not be construed to
relieve any officer of any duties required by law of him on April 5,
1909, with relation to the auditing of public accounts or the
disbursement of public funds, but the provisions of this chapter shall
be construed to be supplemental to all provisions of law existing on
April 5, 1909, safeguarding the care and disbursement of public
funds; and provided further, that the provisions of this chapter shall
not be construed to limit or curtail the power of the governor of the
state under laws existing on April 5, 1909, to make examination or
investigation of any public office or to require reports therefrom.
(Formerly: Acts 1909, c.55, s.23.) As amended by P.L.25-1986,
SEC.37.
IC 5-11-1-23
Repealed
(Repealed by P.L.5-1988, SEC.35.)
IC 5-11-1-24
Uniform compliance guidelines for examinations and reports
Sec. 24. (a) The state board of accounts shall establish in writing
uniform compliance guidelines for the examinations and reports
required by this chapter. The uniform compliance guidelines must
include the standards that an entity must observe to avoid a finding
that is critical of the entity for a reason other than the entity's failure
to comply with a specific law.
(b) The state board of accounts may not establish guidelines for
the auditing of an entity that are inconsistent with any federal audit
guidelines that govern the entity.
(c) The state board of accounts must distribute the uniform
compliance guidelines to each entity that the state board of accounts
may audit.
(d) If the state board of accounts engages or authorizes the
engagement of a private examiner to perform an examination under
this chapter, the examination and report must comply with the
uniform compliance guidelines established under subsection (a). If
a person subject to examination under this chapter engages a private
examiner, the contract with the private examiner must require the
examination and report to comply with the uniform compliance
guidelines established under subsection (a).
(e) The state or a municipality may not request proposals for
performing examinations of an entity that is subject to examination
under this chapter unless the request for proposals has been
submitted to and approved by the state board of accounts.
(f) The state or a municipality may not enter into a contract with
an entity subject to examination under this chapter if the contract
does not permit the examinations and require the reports prescribed
by this chapter.
As added by P.L.3-1986, SEC.15. Amended by P.L.39-1996, SEC.4.
IC 5-11-1-25
Annual examinations; biennial examinations
Sec. 25. (a) Examinations under this chapter shall be conducted
annually for the following:
(1) The state.
(2) Cities.
(3) Counties.
(4) Towns with a population greater than five thousand (5,000).
(5) Public hospitals.
(b) Subject to section 9 of this chapter, examinations under this
chapter shall be conducted biennially for:
(1) municipalities; and
(2) entities;
that are not listed in subsection (a).
As added by P.L.3-1986, SEC.16. Amended by P.L.2-1991, SEC.27.
IC 5-11-1-26
Examination reports; requisites; powers of board
Sec. 26. (a) If a state office, municipality, or other entity has
authority to contract for the construction, reconstruction, alteration,
repair, improvement, or maintenance of a public work, the state
board of accounts shall include in each examination report
concerning the state office, municipality, or entity:
(1) an opinion concerning whether the state office,
municipality, or entity has complied with IC 5-16-8; and
(2) a brief description of each instance in which the state office,
municipality, or entity has exercised its authority under
IC 5-16-8-2(b) or IC 5-16-8-4.
(b) The state board of accounts may exercise any of its powers
under this chapter concerning public accounts to carry out this
section, including the power to require a uniform system of
accounting or the use of forms prescribed by the state board of
accounts.
As added by P.L.63-1987, SEC.1.